According to recent reports, consumer neo banking firm, Niyo, known to be operated by Finney Solutions has managed to raise about 30 million dollars (nearly Rs 240 crore) from a homegrown private equity firm known as Multiples Alternate Asset Management this Tuesday.
In addition to this, the said investment is known to have been done in order to expand the startup’s product capabilities as well as to increase the overall customer base with the help of inorganic and organic opportunities, the private equity firm said on July 19.
Also, while Niyo has not yet disclosed its valuation post its previous round, as per the media reports, it has raised 30 million dollars in less than five months after being able to secure nearly 100 million dollars in Series C funding led by Accel and Lightrock India.
Not just that, it is probably worth noting that, Founded all the way back in 2015 by Virender Bisht and Vinay Bagri, Niyo is a platform that is said to offer digital savings accounts as well as other banking services in partnership with several other banks. Moreover, it claims to serve nearly four million customers across its banking as well as wealth management products, with over 10,000 new users being added to the platform on a daily basis, while processing transactions worth nearly 3 billion dollars.
Not just that, the proceeds will also be used for brand building and bolstering team strength across functions, Multiples said in a statement. Not to mention, Niyo was already in talks about raising funds from Multiples and as a matter of fact, Niyo’s valuation after this fundraiser stands at over 500 million dollars.
“With this fundraiser, our focus is on enhancing product development, improving our product suite to have more consumer-focused products like credit cards, remittances, loans, etc. Our foray into new product categories will help us leverage the massive tailwinds for digital financial products the market is seeing today.” Niyo chief technical officer and co-founder Virender Bisht said in a statement. Neobank is a great product and if you want to know how to start a neobank, read an informative article from software development company Northell.
‘Niyo is able to reach customers in over 16,000 pin codes which cover 80% of the pin codes in India,” Nithya Easwaran, Managing Director at Multiples said. She added that Neobanking platforms like Niyo needs to associate with a traditional bank in order to get a banking license and offer banking products as they do not have one of their own.
Speaking of partnerships with other banks, know that, Niyo has a partnership with about five banks at the moment including SBM bank, Yes Bank, ICICI Bank, DCB Bank as well as Equitas Small Finance Bank.
Reading so far, I hope you must have gotten a fair insight into Niyo and the investment made by Multiples in the Neobanking platform and by now I believe you will be decided on your own whether or not it was the right thing to do and will Niyo have a bright future?
In conclusion, what are your thoughts on Niyo and the investment made by Multiples? Do let us know in the comments area below. To know more about such reports, do check out other articles we have on our website. Thank you for your time & if you found our content informative, do share it with your investor friends!
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